FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
(Mark One)
{ X } QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1997
{ } TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
For Quarter Ended September 30, 1997 Commission file number 0-17616
Realty Parking Properties L.P.
(Exact Name of Registrant as Specified in its Charter)
Delaware 52-1591575
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification Number)
225 East Redwood Street, Baltimore, Maryland 21202
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, Including Area Code: (410) 727-4083
N/A
(Former Name, Former Address, and Former Fiscal Year,
if Changed Since Last Report.)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.
Yes X No
<PAGE>
REALTY PARKING PROPERTIES L.P.
INDEX
Page No.
Part I. Financial Information
Item 1. Financial Statements
Balance Sheets 1
Statements of Operations 2
Statements of Partners' Capital 3
Statements of Cash Flows 4
Notes to Financial Statements 5-6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 7
Part II. Other Information
Item 1. through Item 6. 8
Signatures 9
<PAGE>
REALTY PARKING PROPERTIES L.P.
Balance Sheets
(Unaudited)
<TABLE>
<CAPTION>
September 30, December 31,
1997 1996
Assets
<S> <C> <C>
Investment in real estate $ 33,078,269 $ 33,171,829
Cash and cash equivalents 1,009,900 1,134,392
Accounts receivable 409,841 351,858
$ 34,498,010 $ 34,658,079
Liabilities and Partners' Capital
Accounts payable and accrued expenses $ 26,248 $ 31,469
Due to affiliates 34,237 41,402
Real estate taxes payable 315,588 315,588
376,073 388,459
Partners' Capital
General Partner (53,741) (50,788)
Assignee and Limited Partnership
Interests - $25 stated value per
unit, 1,909,127 units outstanding 34,175,578 34,320,308
Subordinated Limited Partner 100 100
34,121,937 34,269,620
$ 34,498,010 $ 34,658,079
</TABLE>
See accompanying notes to financial statements
1
<PAGE>
REALTY PARKING PROPERTIES L.P.
Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1997 1996 1997 1996
Revenues
<S> <C> <C> <C> <C>
Parking lot rental $ 698,948 $ 617,968 $1,904,154 $1,812,436
Interest income 12,570 16,304 39,390 51,116
711,518 634,272 1,943,544 1,863,552
Expenses
Administrative, including amounts
to related party 26,357 24,382 99,990 77,913
Professional fees 4,500 4,750 13,290 14,550
Management fees to related party 9,029 9,102 29,477 27,851
Depreciation of properties 31,187 30,156 93,561 90,468
71,073 68,390 236,318 210,782
Net earnings $ 640,445 $ 565,882 $1,707,226 $1,652,770
Net earnings per unit of assignee
and limited partnership interest $ 0.33 $ 0.29 $ 0.88 $ 0.85
</TABLE>
See accompanying notes to financial statements
2
<PAGE>
REALTY PARKING PROPERTIES L.P.
Statements of Partners' Capital
For the Nine Months Ended September 30, 1997 and 1996
(Unaudited)
<TABLE>
<CAPTION>
Assignee
and Limited Subordinated
Partnership Limited General
Interests Partner Partner Total
<S> <C> <C> <C> <C>
Balance at December 31, 1996 $ 34,320,308 $ 100 $ (50,788) $ 34,269,620
Net earnings 1,673,081 - 34,145 1,707,226
Distributions to partners (1,817,811) - (37,098) (1,854,909)
Balance at September 30, 1997 $ 34,175,578 $ 100 $ (53,741) $ 34,121,937
Balance at December 31, 1995 $ 34,617,955 $ 100 $ (44,713) $ 34,573,342
Net earnings 1,619,715 - 33,055 1,652,770
Distributions to partners (1,817,811) - (37,098) (1,854,909)
Balance at September 30, 1996 $ 34,419,859 $ 100 $ (48,756) $ 34,371,203
</TABLE>
See accompanying notes to financial statements
3
<PAGE>
REALTY PARKING PROPERTIES L.P.
Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
Sept. 30, 1997 Sept. 30, 1996
Cash flows from operating activities
<S> <C> <C>
Net earnings $ 1,707,226 $ 1,652,770
Adjustments to reconcile net earnings to net cash
provided by operating activities
Depreciation of properties 93,561 90,468
Changes in assets and liabilities
Increase in accounts receivable (57,983) (34,000)
Increase (decrease) in accounts payable and accrue (5,222) 2,209
Decrease in due to affiliates (7,165) (2,536)
Net cash provided by operating activities 1,730,417 1,708,911
Cash flows from investing activities -
additions to investment in real estate - (160,810)
Cash flows from financing activities -
distributions to partners (1,854,909) (1,854,909)
Net decrease in cash and cash equivalents (124,492) (306,808)
Cash and cash equivalents
Beginning of period 1,134,392 1,495,960
End of period $ 1,009,900 $ 1,189,152
</TABLE>
See accompanying notes to financial statements
4
<PAGE>
REALTY PARKING PROPERTIES L.P.
Notes to Financial Statements
September 30, 1997
(Unaudited)
(1) The Partnership and Basis of Preparation
The accompanying financial statements of Realty Parking Properties L.P.
(the "Partnership") do not include all of the information and note
disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles. The unaudited
interim financial statements reflect all adjustments which are, in the
opinion of management, necessary to a fair statement of the results for
the interim periods presented. All such adjustments are of a normal
recurring nature. The unaudited interim financial information should be
read in conjunction with the financial statements contained in the 1996
Annual Report.
(2) Cash and Cash Equivalents
The Partnership considers all highly liquid investments with original
maturities of three months or less to be cash equivalents. Cash and
cash equivalents consist entirely of cash and money market accounts and
are stated at cost, which approximates market value at September 30,
1997 and December 31, 1996.
(3) Investment in Real Estate
Investment in real estate is stated at the lower of fair value or cost,
net of accumulated depreciation, and includes all related acquisition
costs of the properties, and is summarized as follows:
<TABLE>
<CAPTION>
September 30, 1997 December 31, 1996
<S> <C> <C>
Land $30,207,717 $30,207,717
Buildings 3,445,777 3,445,777
Land Improvements 190,804 190,804
33,844,298 33,844,298
Less: accumulated depreciation (766,029) (672,469)
Total $33,078,269 $33,171,829
</TABLE>
Depreciation of the garage structures is computed using the
straight-line method over 31.5 years for property placed in service
prior to January 1, 1994 and 39 years for property placed in service
after January 1, 1994.
(4) Related Party Transactions
The Partnership's general partner earned a property management fee of
$9,029 and $9,102 (1% of gross revenues of the properties and other
sources of income) during the three months ended September 30, 1997 and
1996, respectively, and $29,477 and $27,851 during the nine months
ended September 30, 1997 and 1996, respectively. The general partner is
reimbursed for certain costs incurred relating to administrative and
professional services of the Partnership totaling $25,208 and $17,196
for the three months ended September 30, 1997 and 1996, respectively,
and $94,927 and $63,523 for the nine months ended September 30, 1997
and 1996, respectively.
(5) Net Earnings Per Unit of Assignee and Limited Partnership Interests
Net earnings per unit of assignee and limited partnership interests is
disclosed on the Statements of Operations and is based upon 1,909,127
units outstanding.
-5-
<PAGE>
REALTY PARKING PROPERTIES L.P.
Notes to Financial Statements
September 30, 1997
(Unaudited)
(6) Subsequent Event
On November 13, 1997, the Partnership will make a cash distribution
totaling $618,303 of which 98% is allocated to Unitholders. This
distribution is derived from funds provided by operations during the
quarter ended September 30, 1997. Holders of Units will receive a cash
distribution of $.317 per original $25 unit.
-6-
<PAGE>
REALTY PARKING PROPERTIES L.P.
Management's Discussion and Analysis of Financial
Condition and Results of Operations
Liquidity and Capital Resources
At September 30, 1997, the Partnership had a working capital position
that includes cash and cash equivalents of $1,009,900 and accounts payable of
$26,248. Cash and cash equivalents decreased $11,868 during the third quarter of
1997. This decrease represents the net effect of $606,435 in cash provided by
operating activities and distributions to investors of $618,303.
At September 30, 1997, the Partnership had $1,009,900 of cash and cash
equivalents invested in money market instruments. It is anticipated that
remaining cash and cash equivalents will be sufficient to satisfy the
Partnership's liquidity requirements.
On November 13, 1997, the Partnership will make a distribution to
investors of $618,303. This distribution is comprised of funds provided by
operations during the quarter ended September 30, 1997 deemed available for
distribution by the General Partner.
The Partnership currently has no plans to use working capital to
perform major repairs or improvements to any of its properties. No acquisitions
of additional properties are anticipated in the foreseeable future.
Results of Operations
The Partnership leases its facilities to parking operators under terms
that typically include a minimum rent calculated as a percentage of certain
acquisition costs. In addition, lessees are obligated to pay percentage rent,
calculated as a percentage of gross parking revenues.
Total parking lot rents of $698,948 and $1,904,154 were earned during
the three and nine months ended September 30, 1997, respectively. The increases,
over the same periods in 1996, are the result of increased percentage rents
earned at two of the properties. During the first nine months of 1997 the
Partnership earned percentage rents at the Birmingham and the Milwaukee
facilities of $54,844 and $94,000, respectively, representing increases of 80%
and 159% over the same period in 1996, respectively. The substantial increase in
percentage rents at the Milwaukee facility is largely attributable to additional
revenues brought about by an increase in the number of daily parkers. Many of
the contractors working on the new Milwaukee convention center find it
convenient to park at our facility. At the completion of construction, it is
anticipated that revenues will decline due to the loss of these parkers.
Interest earnings decreased by 23% during the three and nine months
ended September 30, 1997 when compared to the same periods in 1996. These
decreases were primarily the result of lower average cash balances.
During the three and nine months ended September 30, 1997, expenses
(net of depreciation) totaled $39,886 and $142,757, respectively, representing
increases of 4% and 19% over the same periods in 1996, respectively. The
increases are due to higher administrative costs, including printing, postage,
labor and travel. Site visits to certain properties led to additional labor and
travel expenses.
The Partnership, in accordance with its original investment strategy,
continues to examine opportunities for disposition of its facilities. While it
was initially anticipated that the highest level returns would be obtained from
property sales to buyers who desired the site for a near term development
project, it is evident that certain properties could be sold to investment
companies or R.E.I.T.S. that concentrate on parking properties generating
current cash flow.
-7-
<PAGE>
REALTY PARKING PROPERTIES L.P.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Inapplicable
Item 2. Changes in Securities
Inapplicable
Item 3. Defaults upon Senior Securities
Inapplicable
Item 4. Submission of Matters to a Vote of Security Holders
Inapplicable
Item 5. Other Information
Inapplicable
Item 6. Exhibits and Reports on Form 8-K
a) Exhibits: None
b) Reports on Form 8-K: None
-8-
<PAGE>
REALTY PARKING PROPERTIES L.P.
SIGNATURES
Pursuant to the requirements of Section 13 or 15 (d) of the Securities Exchange
Act of 1934, as amended, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.
REALTY PARKING PROPERTIES L.P.
DATE: 11/11/97 By: /s/ John M. Prugh
John M. Prugh
President and Director
Realty Parking Company, Inc.
General Partner
DATE: 11/11/97 By: /s/ Timothy M. Gisriel
Timothy M. Gisriel
Treasurer
Realty Parking Company, Inc.
General Partner
-9-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
(Replace this text with legend, if applicable)
</LEGEND>
<CIK> 0000841127
<NAME> Realty Parki
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-1-1997
<PERIOD-END> SEP-30-1997
<EXCHANGE-RATE> 1
<CASH> 1,009,900
<SECURITIES> 0
<RECEIVABLES> 409,841
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,419,741
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 34,498,010
<CURRENT-LIABILITIES> 376,073
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 34,498,010
<SALES> 0
<TOTAL-REVENUES> 1,943,544
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 236,318
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,707,226
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,707,226
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,707,226
<EPS-PRIMARY> 0.000
<EPS-DILUTED> 0.000
</TABLE>
